API demand an end to the ethanol mandate

The API has called on the Obama administration to use is waiver authority to lower an unsafe ethanol mandate with immediate effect before it hurts consumers, damages vehicles and delivers a severe blow to America’s economy.

Comments

‘The ever increasing ethanol mandate has become unsustainable, causing a looming crisis for gasoline consumers,’ said API Downstream Group Director Bob Greco. ‘We’re at the point where refiners are being pressured to put unsafe levels of ethanol in gasoline, which could damage vehicles, harm consumers and wreak havoc on our economy.

‘Congress must repeal the mandate. But there isn’t much time to get this done. To protect consumers in the near term, EPA has the authority to reduce the mandate now. This would immediately lessen the blend wall problem until Congress can act.’

Further details

As we approach the blend wall when more ethanol is required than is safe for vehicles, the mandate could drive up the cost of diesel by 300% and the cost of gasoline by 30% by 2015, according to a report by NERA. In turn, that could cause a US$ 770 billion decrease in US GDP and reduce take home pay for American workers by US$ 580 billion. Furthermore, higher ethanol blends can damage engines and cause vehicles to break down, according to testing by the Coordinating Research Council.

American Fuel & Petrochemical Manufacturers President, Charles T. Drevna, has issued a statement in response to the House Oversight and Government Reform Subcommittee on Energy Policy, Health care and Entitlements hearing titled: ‘Up against the blend wall: Examining EPA’s role in the Renewable Fuel Standard’.